The Dodd-Frank Act passed in July 2010 is being labeled as one of the most significant change to financial services since the Great Depression. These new regulations will have a reach on every alley on Wall Street. Once new legislations are fully implemented, this will lead to financial institutions requiring major overhauls in all lines of business that these new laws will affect. From "skin in the game" mortgage backed securities to other mortgage reform such as consumer protection, financial institutions will need to reevaluate the lines of businesses that pose as major risks due to increased capital requirements and retained credit risk from new regulation; as well as protecting consumers and developing new disclosures to prevent consumers from being victims of unfair lending practices.
Newbridge Consulting's extensive policy research, network of industry experts, and talented team of consultants will help financial institutions develop a strategic approach to minimizing risk while working effectively with government regulators to help rebuild our nation's financial system.
Foreclosure Review Changes
During the past couple of years, while the volume of foreclosures increased dramatically, servicer output did not. With today's "Robo-signing" scandals and increasing government involvement, servicers are being penalized for their inabilities to react to today's market conditions. Investors and Servicers will need to be more engaged with new mandates set forth by their respective government agencies. Major overhauls to the foreclosure process will be needed to keep companies compliant with the current legislation and help minimize losses involved with foreclosure.
Whether it's creating a new audit methodology for loan modifications to ensure that servicers are exploring all options before initiating a foreclosure sale or providing transparency in the agency reporting process, Newbridge Consulting has worked with servicers to keep homeowners in their homes and to ensure companies are performing well on their respective scorecards. Developing a streamlined foreclosure review process with a strategic integrated approach, robust controls, and having a team of advisors on your side who know the current regulations and have the experience to implement changes to foreclosure process is needed to keep servicers and investors away from the watchful eye of regulators.
International Finance Reporting Standards (IFRS)
Although the SEC has not yet decided on the transition of IFRS to the US financial reporting system, there is little doubt of the driving need for a single set of global financial reporting standards, which will benefit investors and the flow of international capital. While more countries are adopting IFRS and the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are currently working together on several different joint projects to eventually make the standards compatible, being familiar with and understanding IFRS will be critical in assessing the potential impacts implementing the new standards of financial reporting will have on business and operation processes. Companies will need to reassess the adequacy of their systems and operations, personnel and other capital resources, budget, training, etc. For large corporations, the major business and operational implications that come with these new set of standards will require a fast start for these corporation and to remain proactive as analyses and implementation of the IFRS may take years to incorporate into their business and accounting processes.
Newbridge Consulting's core team and subject matter experts include CPAs with extensive experience in Accounting Policy, Operational Accounting, and Systems Implementation. Newbridge Consulting will provide the most practical and cost-effective strategic approach in dealing with the transition and will be fully engaged to meet the needs of our clients before during and even after implementation of these standards.
Sources: United States Senate Committee on Banking, Housing, and Urban Affairs, (July 1, 2010). Brief Summary of the Dodd-Frank Wall Street Reform and Consumer Protection Act.; Bloomberg L.P., (July 10, 2011). Dodd-Frank Act Forcing Banks to Slim Down, Reshape Swaps: One Year Later.